by Richard F. O’Boyle, Jr., LUTCF, MBA
“The Insider’s Guide to Retirement and Insurance Planning”
http://www.retirementandinsurance.com
We have been taught to keep throughout our working years to fund our retirement - diligently socking money in our 401 (k) s and pay our debt. But once you flip the switch and settle on a retreat, presumably, no worries, how do we effectively and efficiently by our assets in those golden years? Ray Lucia, a certificate with the style of a celebrity financial planner helps us to answer this difficult question with "buckets of money" planning strategy.
The essence of "buckets of money" is our nest eggs should be separated into three "buckets" of income sources of ultra-safe, conservative medium-term assets and funds of aggressive actions. During seven-year cycles, funds are depleted and move to the next immediate bucket to be used for current income. The strategy cubes jumps the key obstacle retirement planning, providing security, growth, diversification, tax-efficiency and lifetime income. The book identifies which investments are suitable for various cubes, along with guidelines for proportions of each.
The book reads like an infomercial, but do not let it off. The general discussion of asset classes and products (stocks, bonds, annuities, etc.) is valuable for the novice and seasoned investors alike. His holistic perspective allows you to honestly cover all kinds of potential investment. Mr. Lucia is not trying to sell another strategy planning anything (and does so well).
the website of Mr. Lucia contains some notes on the changes, but I would like to see a fully updated edition of the book. For example, the strategy recommends cubes real estate holdings of up to 20% of a portfolio in the form of real estate investment funds. Given the crisis 2008 mortgage, maybe that should be reconsidered. Mr. Lucia only skims beyond the important stop life, disability insurance and long term care provided as we change our retirement portfolio accumulation mode mode distribution. Fortunately, the author takes into account the complexity of the tax code, as the smart tax planning can make or break a retirement plan. Statistical numerous examples in the book are still useful today.
The worksheets included in the book are very easy to use. While the potential of "do it yourself" is there for the experienced investor who has a trusted advisor would not recommend an individual to adjust your portfolio without consulting a professional. I'm not sure if the cubes strategy is an "all or nothing" approach to investing. Any retirement plan can benefit from non-controversial concepts presented here.
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